New Economics Papers
on Law and Economics
Issue of 2011‒02‒12
four papers chosen by
Jeong-Joon Lee, Towson University

  1. No-Fault Divorce and Rent-Seeking By S. BRACKE; K. SCHOORS; G. VERSCHELDEN
  2. Social Bonding, Early School Leaving, and Delinquency By Traag Tanja; Marie Olivier; Velden Rolf van der
  3. Corruption and Social Interaction: Evidence from China By Bin Dong; Benno Torgler
  4. Accomplishing Human Rights Justice in the context of Assets Confiscation: An Evaluation of the United Kingdom Drug Laws Enforcement By Kingston, Kato Gogo

    Abstract: Couples filing for divorce in Belgium have the option to either opt for a no-fault divorce trajectory or a consensual trajectory. We analyse the determinants of divorce trajectory choice and of the resulting post-divorce transfers. The no-fault trajectory is more likely, if spouses are more specialised in either domestic or labour market production. This is consistent with a theory of divorce as rent extraction. Child support payments depend neither on the divorce trajectory nor on alimony transfers or relative incomes, but are driven by the payer's wage and the child(ren)'s residence. Partner alimony transfers are higher for no-fault unilateral divorces with pronounced self sacrifice.
    Keywords: Divorce, Bargaining, Law and Legislation
    JEL: K36 D14
    Date: 2010–09
  2. By: Traag Tanja; Marie Olivier; Velden Rolf van der (METEOR)
    Abstract: In this paper we investigate how successful social bonding theory is at predicting juvenile delinquency and school dropout behaviour. We adopt a simple dynamic approach which assumes that past involvement in risky behaviour reduces individual restraints for future participation in risky behaviour. We use a ten years education panel following Dutch adolescents who participated in a survey in their first year of high school in 1999. This information was matched to annual information on police arrests based on registry data. Our results show that school performance (as measured by test scores) is the key social bond element preventing young people from engaging in risk behaviour. We also find that involvement in past risky behaviour increases the likelihood of future missteps and that the protective influence of school performance is mitigated.
    Keywords: labour economics ;
    Date: 2011
  3. By: Bin Dong (The School of Economics and Finance, Queensland University of Technology); Benno Torgler (The School of Economics and Finance, Queensland University of Technology, CREMA – Centre for Research in Economics, Management and the Arts and CESifo)
    Abstract: We explore theoretically and empirically whether social interaction, including local and global interaction, influences the incidence of corruption. We first present an interaction-based model on corruption that predicts that the level of corruption is positively associated with social interaction. Then we empirically verify the theoretical prediction using within-country evidence at the province-level in China during 1998 to 2007. Panel data evidence clearly indicates that social interaction has a statistically significantly positive effect on the corruption rate in China. Our findings, therefore, underscore the relevance of social interaction in understanding corruption.
    Keywords: Corruption, Social Interaction, China
    JEL: K42 D72 D64 O17 J24
    Date: 2011–01
  4. By: Kingston, Kato Gogo
    Abstract: It is estimated that crude oil, tourism and illicit drug trade are among the top five most financially inducing business in the world. Drug cartels conducts sophisticated and well organised activities including money laundering and monitoring of large networks of their couriers. In past the decade, the United Kingdom has incurred large expenditure on the treatment of drug related illnesses and, on the enforcement of drug control laws. Several drug laws are enacted to dealing with the waves of illicit drugs in the country. There is controversy over the ways by which the properties of the drug traffickers and suspected drug dealer, are seized by the State; in order to seize anyone’s private property prior to commencement of legal proceedings to effect permanent forfeiture, the law enforcement agencies are only required to show “probable cause” that the property being seized is acquired with the profit of drug crime alternatively, that the property facilitates drug criminal activities. Using data from academic materials and United Kingdom case laws, the paper argues that the United Kingdom drug trafficking laws particularly the enforcement of “civil asset recovery” under the Proceeds of Crime Act 2002 and, the “Criminal confiscation” under the Drug trafficking Act 1994 violates the International Human Rights Laws.
    Keywords: Drugs, Human Rights, UK laws, Criminal property
    JEL: K1 K14
    Date: 2011–01–12

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